Xelpmoc Design And Tech Limited

Xelpmoc is undergoing a significant strategic shift, moving its focus from the startup segment to the corporate segment and developing in-house products. This transition is driven by challenges in the startup ecosystem, including funding volatility. The company aims to generate revenue within the corporate sector, particularly in data science, AI, and machine learning, and has launched its first SaaS offering in the ElderTech space. This shift has led to a decrease in consolidated revenue, but management believes it will lead to more stable and predictable growth.

For Q4 FY25, consolidated operating revenue stood at INR 7.1 million, a 21.97% decrease YoY from INR 9.1 million in Q4 FY24, and a 14.46% decrease QoQ from INR 8.3 million in Q3 FY25. However, standalone revenue for Q4 FY25 increased 9.63% QoQ to INR 9.1 million, driven by services to corporates. The consolidated operating EBITDA loss narrowed significantly to INR 15.3 million in Q4 FY25, compared to a loss of INR 49.2 million in Q4 FY24 and INR 19.8 million in Q3 FY25. The net loss for the quarter was INR 18.4 million.

For the full fiscal year 2025, consolidated revenue from operations was INR 39.0 million, a substantial decrease of 39.72% from INR 64.7 million in FY24. The operating EBITDA loss for FY25 was INR 73.2 million, an improvement from a loss of INR 149.1 million in FY24. The net loss for the year was INR 80.7 million, compared to INR 138.9 million in FY24. Standalone financials mirrored the consolidated revenue at INR 39.0 million, with an operating EBITDA loss of INR 63.1 million and a net loss of INR 86.2 million.

The fair value of Xelpmoc's investment in portfolio companies increased to INR 631.8 million as of March 31, 2025, from INR 546.3 million a year prior. A key highlight was the partial sale of a 2.5% stake in Mihup for INR 100 million, based on a total valuation of INR 4020 million, with Xelpmoc retaining 6.4-6.5%. Other portfolio companies like Woovly, Snaphunt, Pencil, The Star In Me, and Biome showed progress, with Mihup reporting INR 180 million in 12MFY25 revenue and Snaphunt projecting USD 1 million in revenue for 2025.

Xelpmoc is concentrating its efforts on data science, artificial intelligence, and machine learning solutions for the corporate sector, specifically targeting fintech, insurance, and legal tech industries. The company's in-house products are designed to automate manual processes, such as document processing, offering higher accuracy and speed than existing tools. This specialized knowledge and ability to handle exceptions are seen as key differentiators in attracting corporate clients.

The company's headcount has reduced from approximately 112 to 50 employees. This reduction is attributed to a strategic decision to exit unprofitable government projects that were burning cash. Management expects operating costs to remain stable going forward^⏳, as they are adequately manned for the current operational scale and will only re-staff as products and services gain traction and expand.